Payroll calculator question
Im trying to understand how to use the payroll calculator and i can't figure out the CPP MAXed vs CPP EXCEMPTED options:
Here are the settings:
12 Periods (monthly)
60k GROSS
5k per period
When using Salary with everything default and CC1, having CCP excempted and EI excempt will result in:
Federal tax deduction 640.53
Provincial tax deduction 312.97
Total deductions 953.50
Net amount 4,046.50
However, using CCP MAXED and EI MAXED will result in:
Federal tax deduction 595.42
Provincial tax deduction 297.78
Total deductions 893.20
Net amount 4,106.80
CPP/EI MAXED will pay less tax thanCPP/EI exempted.. why is that?
So once CPP/EI has been maxed for the year, should the MAXED option be used? or Exempt option be used?
Looking at the payroll slip, it appears YEAR-TO-DATE amount was used to calculate and then once the max has been paid the EXCEMPTED option was used instead of contribution max option?
Here are the settings:
12 Periods (monthly)
60k GROSS
5k per period
When using Salary with everything default and CC1, having CCP excempted and EI excempt will result in:
Federal tax deduction 640.53
Provincial tax deduction 312.97
Total deductions 953.50
Net amount 4,046.50
However, using CCP MAXED and EI MAXED will result in:
Federal tax deduction 595.42
Provincial tax deduction 297.78
Total deductions 893.20
Net amount 4,106.80
CPP/EI MAXED will pay less tax thanCPP/EI exempted.. why is that?
So once CPP/EI has been maxed for the year, should the MAXED option be used? or Exempt option be used?
Looking at the payroll slip, it appears YEAR-TO-DATE amount was used to calculate and then once the max has been paid the EXCEMPTED option was used instead of contribution max option?